| [X]    | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) |
|--------|---------------------------------------------------|
|   | OF THE SECURITIES EXCHANGE ACT OF 1934            |

| [  ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) |
|----------------|----------------------------------------------------|
|           | OF THE SECURITIES EXCHANGE ACT OF 1934             |

| Delaware                        | 11-2895590                     |
|---------------------------------|--------------------------------|
| (State or other jurisdiction of | (I.R.S. Employer               |
| Incorporation or organization)  | Identification  No.) |

| 13450 West Sunrise Blvd., Suite 510, Sunrise, FL | 33323      |
|--------------------------------------------------|------------|
| (Address of principal executive offices)         | (Zip Code) |

----

| PART I – FINANCIAL INFORMATION                                                                 | Page   |
|------------------------------------------------------------------------------------------------------|--------|
|                                                                                                 |   |
| Item 1.- Financial Statements.                                                                       |   |
|                                                                                                 |   |
| Condensed Consolidated Balance Sheets as of June 30, 2010 (Unaudited) and                            |   |
| December 31, 2009                                                                                    | 3      |
|                                                                                                 |   |
| Condensed Consolidated Statements of Income                                                          |   |
| For the Three and Six Months Ended June 30, 2010 and 2009 (Unaudited)                                | 4      |
|                                                                                                 |   |
| Condensed Consolidated Statements of Cash Flows                                                      |   |
| For the Six Months Ended June 30, 2010 and 2009 (Unaudited)                                          | 5      |
|                                                                                                 |   |
| Notes to Condensed Consolidated Financial Statements (Unaudited)                                     | 6      |
|                                                                                                 |   |
| Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations | 13     |
|                                                                                                 |   |
|                                                                                                 |   |
| Item 3 -Quantitative and Qualitative Disclosure About Market Risk                                    | 17     |
|                                                                                                 |   |
| Item 4T - Controls and Procedures                                                                    | 17     |
|                                                                                                 |   |
| PART II – OTHER INFORMATION                                                                    |   |
|                                                                                                 |   |
| Item 6. Exhibits                                                                                     | 19     |
|                                                                                                 |   |
| Signatures                                                                                           | 20     |
|                                                                                                 |   |
| CERTIFICATIONSExhibits                                                                               |   |

----

|                                                                                                                                                                                                                                   |   | June 30, 2010 |            |   | December 31,2009 |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|-----------------|--------|------------------|
|                                                                                                                                                                                                                                   |   | (Unaudited)             |            |   |             |
| ASSETS                                                                                                                                                                                                                                 |   |                    |            |   |             |
| Current assets                                                                                                                                                                                                                         |   |                    |            |   |             |
| Cash and cash equivalents                                                                                                                                                                                                              |   | $                       | 1,250           |   |             | $ | 1,758 |   |
| Accounts receivable, net of allowance for doubtful accounts of $0 in 2010 and 2009                                                                                                                                                |   |                    | 1,691           |   |             |   | 1,296 |   |
| Deferred tax asset – current                                                                                                                                                                                                     |   |                    | 750             |   |             |   | 750 |   |
| Prepaid expenses and other current assets                                                                                                                                                                                              |   |                    | 30              |   |             |   | 76 |   |
| Total current assets                                                                                                                                                                                                                   |   |                    | 3,721           |   |             |   | 3,880 |   |
|                                                                                                                                                                                                                                   |   |                    |            |   |             |   |   |   |
| Property and equipment, net                                                                                                                                                                                                            |   |                    | 295             |   |             |   | 397 |   |
| Deferred tax asset                                                                                                                                                                                                                     |   |                    | 2,117           |   |             |   | 2,117 |   |
| Other assets                                                                                                                                                                                                                           |   |                    | 225             |   |             |   | 226 |   |
|                                                                                                                                                                                                                                   |   |                    |            |   |             |   |   |   |
| TOTAL ASSETS                                                                                                                                                                                                                           |   | $                       | 6,358           |   |             | $ | 6,620 |   |
|                                                                                                                                                                                                                                   |   |                    |            |   |             |   |   |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                                                                                             |   |                    |            |   |             |   |   |   |
| Current liabilities                                                                                                                                                                                                                    |   |                    |            |   |             |   |   |   |
| Accounts payable and accrued expenses                                                                                                                                                                                                  |   | $                       | 1,631           |   |             | $ | 1,444 |   |
| Current portion of capital lease obligations                                                                                                                                                                                           |   |                    | 3               |   |             |   | 6 |   |
| Current portion of notes payable                                                                                                                                                                                                       |   |                    | 154             |   |             |   | 177 |   |
| Warrant liability                                                                                                                                                                                                                      |   |                    | --              |   |             |   | 221 |   |
| Dividends payable                                                                                                                                                                                                                      |   |                    | --              |   |             |   | 26 |   |
| Deferred revenue                                                                                                                                                                                                                       |   |                    | 30              |   |             |   | 75 |   |
| Total current liabilities                                                                                                                                                                                                              |   |                    | 1,818           |   |             |   | 1,949 |   |
|                                                                                                                                                                                                                                   |   |                    |            |   |             |   |   |   |
| Notes payable, net of current portion                                                                                                                                                                                                  |   |                    | 62              |   |             |   | 143 |   |
|                                                                                                                                                                                                                                   |   |                    |            |   |             |   |   |   |
| Total liabilities                                                                                                                                                                                                                      |   |                    | 1,880           |   |             |   | 2,092 |   |
|                                                                                                                                                                                                                                   |   |                    |            |   |             |   |   |   |
| Series C Redeemable Preferred stock, 0 shares issued and outstanding in 2010 and 1,000 shares issued and outstanding in 2009; liquidation preference of $1,000,000                                                                     |   |                    | --    |   |             |   |   1,000  |   |
| Commitments and contingencies                                                                                                                                                                                                          |   |                    |            |   |             |   |   |   |
|                                                                                                                                                                                                                                   |   |                    |            |   |             |   |   |   |
| Shareholders’ equity                                                                                                                                                                                                             |   |                    |            |   |             |   |   |   |
|   Preferred stock, $0.0001 par value; 2,000,000 shares authorized;Series D Redeemable Preferred, 0 shares issued and outstanding in 2010 and 100 shares issued and outstandingin 2009; liquidation preference of $100,000.   |   |                    |   --       |   |             |   |   -- |   |
| Common stock, $0.0001 par value; 50,000,000 shares authorized; 11,523,450 and 11,216,158  shares issued in 2010 and 2009, respectively; and 11,483,523 and 11,176,231 shares outstanding in 2010 and 2009, respectively |   |                    |    1  |   |             |   |    1 |   |
|   Additional paid-in capital                                                                                                                                                                                                 |   |                    | 114,728         |   |             |   | 114,559 |   |
|   Accumulated deficit                                                                                                                                                                                                        |   |                    | (109,923        | )      |             |   | (110,704 | ) |
|                                                                                                                                                                                                                                   |   |                    | 4,806           |   |             |   | 3,856 |   |
|   Common stock in treasury, at cost  - 24,371 shares                                                                                                                                                               |   |                    | (328            | )      |             |   | (328 | ) |
| Total shareholders’ equity                                                                                                                                                                                                       |   |                    | 4,478           |   |             |   | 3,528 |   |
|                                                                                                                                                                                                                                   |   |                    |            |   |             |   |   |   |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                                                                                       |   | $                       | 6,358           |   |             | $ | 6,620 |    |

----

|                                                                                  |   | Three Months Ended |         |   | Six Months Ended |   |
|---------------------------------------------------------------------------------------|--------|--------------------|--------------|--------|------------------|--------|
|                                                                                  |   | June 30,           |         |   | June 30,         |   |
|                                                                                  |   | 2010               |         |   | 2009             |   |   | 2010 |   |   | 2009 |   |
|                                                                                  |   |               |         |   |             |   |   |   |   |   |   |   |
| Revenue                                                                               |   | $                  | 2,513        |   |             | $      | 2,880 |   |   | $ | 4,894 |   |   | $ | 5,174 |   |
|                                                                                  |   |               |         |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Costs and expenses                                                                    |   |               |         |   |             |   |   |   |   |   |   |   |   |   |   |   |
|   Operations, research and development                                      |   |               | 909          |   |             |   | 1,007 |   |   |   | 1,802 |   |   |   | 1,873 |   |
|   Sales and marketing                                                       |   |               | 403          |   |             |   | 354 |   |   |   | 874 |   |   |   | 697 |   |
|   General and administrative                                                |   |               | 742          |   |             |   | 640 |   |   |   | 1,472 |   |   |   | 1,380 |   |
|   Depreciation and amortization                                             |   |               | 61           |   |             |   | 93 |   |   |   | 137 |   |   |   | 190 |   |
|                                                                                  |   |               | 2,115        |   |             |   | 2,094 |   |   |   | 4,285 |   |   |   | 4,140 |   |
|                                                                                  |   |               |         |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Operating income                                                                      |   |               | 398          |   |             |   | 786 |   |   |   | 609 |   |   |   | 1,034 |   |
|                                                                                  |   |               |         |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Other (income) expense                                                                |   |               |         |   |             |   |   |   |   |   |   |   |   |   |   |   |
|   Change in fair value of warrant liability                                 |   |               | (26          | )      |             |   | 78 |   |   |   | (221 | ) |   |   | 57 |   |
|   Other income                                                              |   |               | --           |   |             |   | -- |   |   |   | (26 | ) |   |   | -- |   |
|   Interest expense, net                                                     |   |               | 6            |   |             |   | 7 |   |   |   | 13 |   |   |   | 13 |   |
|                                                                                  |   |               |         |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Income  before provision for income tax                                     |   |               | 418          |   |             |   | 701 |   |   |   | 843 |   |   |   | 964 |   |
|                                                                                  |   |               |         |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Provision for income taxes                                                            |   | (10)               |         |   | (17)             |   |   |   | (20 | ) |   |   | (32 | ) |
|                                                                                  |   |               |         |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                            |   |               | 408          |   |             |   | 684 |   |   |   | 823 |   |   |   | 932 |   |
|                                                                                  |   |               |         |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Preferred stock dividends                                                             |   |               | (16          | )      |             |   | (79 | ) |   |   | (42 | ) |   |   | (158 | ) |
|                                                                                  |   |               |         |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Net income  attributable to common shareholders                             |   | $                  | 392          |   |             | $      | 605 |   |   | $ | 781 |   |   | $ | 774 |   |
|                                                                                  |   |               |         |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Basic  income  per share attributable to common shareholders |   | $                  | 0.03         |   |             | $      | 0.06 |   |   | $ | 0.07 |   |   | $ | 0.07 |   |
|                                                                                  |   |               |         |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Diluted income  per share attributable to common shareholders          |   | $                  | 0.03         |   |             | $      | 0.05 |   |   | $ | 0.07 |   |   | $ | 0.07 |   |
|                                                                                  |   |               |         |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Basic weighted average common shares outstanding                                      |   |               |  11,430 |   |             |   |  10,800 |   |   |   |  11,356 |   |   |   |  10,735 |   |
|                                                                                  |   |               |         |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Diluted weighted average common shares outstanding                                    |   |               |  11,635 |   |             |   |  11,016 |   |   |   |  11,594 |   |   |   |  11,054 |   |

----

|                                                                                           |   | For the Six Months Ended                                              |     |   |
|------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------|----------|--------|
|                                                                                           |   |   June 30,                                                       |     |   |
|                                                                                           |   |     2010       2009 |     |   |
|                                                                                           |   |                                                                       |     |   |
| Cash flows from operating activities                                                           |   |                                                                       |     |   |
|  Net income                                                                               |   | $                                                                          | 823      |   |   | $ | 932 |   |
|  Adjustments to reconcile net income  to net cash provided by operations:  |   |                                                                       |     |   |   |   |   |   |   |
|     Amortization and depreciation                                          |   |                                                                       | 137      |   |   |   | 190 |   |
|     Stock based compensation expense                                       |   |                                                                       | 269      |   |   |   | 290 |   |
|     Change in fair value of warrant liability                              |   |                                                                       | (221     | )      |   |   | 57 |   |
|    Changes in operating assets and liabilities:                                 |   |                                                                       |     |   |   |   |   |   |   |
|     Accounts receivable                                                    |   |                                                                       | (395     | )      |   |   | 134 |   |
|     Prepaid expenses and other current assets                              |   |                                                                       | 46       |   |   |   | 107 |   |
|     Accounts payable and accrued expenses                                  |   |                                                                       | 187      |   |   |   | (144 | ) |
|     Deferred revenue                                                       |   |                                                                       | (45      | )      |   |   | (8 | ) |
| Net cash provided by operations                                                                |   |                                                                       | 801      |   |   |   | 1,558 |   |
|                                                                                           |   |                                                                       |     |   |   |   |   |   |   |
| Cash flows used in investing activities:                                                       |   |                                                                       |     |   |   |   |   |   |   |
|     Expenditures for property and equipment                                |   |                                                                       | (34      | )      |   |   | (25 | ) |   |
|                                                                                           |   |                                                                       |     |   |   |   |   |   |   |
| Cash flows from financing activities:                                                          |   |                                                                       |     |   |   |   |   |   |   |
|     Payment of dividends on preferred stock                                |   |                                                                       | (68      | )      |   |   | (203 | ) |   |
|     Redemption of preferred stock                                          |   |                                                                       | (1,100   | )      |   |   | -- |   |   |
|     Proceeds from issuance of shares on exercise of warrants               |   |                                                                       | --       |   |   |   | 100 |   |   |
|     Principal payments on capital lease obligations                        |   |                                                                       | (3       | )      |   |   | (4 | ) |   |
|     Repayments of long-term debt                                           |   |                                                                       | (104     | )      |   |   | (85 | ) |   |
| Net cash used in financing activities                                                          |   |                                                                       | (1,275   | )      |   |   | (192 | ) |   |
|                                                                                           |   |                                                                       |     |   |   |   |   |   |   |
| Net (decrease) increase  in cash and cash equivalents                                |   |                                                                       | (508     | )      |   |   | 1,341 |   |   |
|                                                                                           |   |                                                                       |     |   |   |   |   |   |   |
| Cash and cash equivalents – beginning of period                                          |   |                                                                       | 1,758    |   |   |   | 980 |   |   |
|                                                                                           |   |                                                                       |     |   |   |   |   |   |   |
| Cash and cash equivalents – end of period                                                |   | $                                                                          | 1,250    |   |   | $ | 2,321 |   |   |
| Supplemental Disclosures: Cash paid for interest                                          |   |  $                                                                    | 15  |   |   |  $ | 17  |   |   |
|  Cash paid for income taxes                                                               |   |  $                                                                    | 22  |   |   |  $ | 4  |   |   |
|   Non-cash investing and financing activities:                                            |   |                                                                       |     |   |   |   |   |   |   |
|  Dividends accrued and unpaid                                                             |   |  $                                                                    | --  |   |   |  $ | 79  |   |   |
| Reduction in accrued liabilities through issuance of common stock                    |   |  $                                                                    | --  |   |   |  $ | 198  |   |   |
| Derivative liability on adoption of  ASC 815-40, "Contracts in Entity's Own Stock"   |   |  $                                                                    | --  |   |   |  $ | 147  |    |   |

----

| 1.   | Interim Financial Information |
|----------------|-------------------------------|

----

|                              |   |   Shares(in thousands) |   |   |  Weighted Average Exercise Price |   |   | Weighted Average Remaining ContractualTerm (in years) |   |   |  Aggregate Intrinsic Value(in thousands) |   |
|-----------------------------------|--------|---------------------------------------|--------|--------|--------------------------------------------|--------|--------|------------------------------------------------------------|--------|--------|----------------------------------------------------|--------|
| Balance,January 1, 2010           |   |                                  | 770    |   |                                       | $      | 0.68   |                                                       |   |   |                                               |   |   |   |
|     Granted   |   |                                  | --     |   |                                       |   | --     |                                                       |   |   |                                               |   |   |   |
|     Exercised |   |                                  | (220)  |   |                                       | $      | 0.51   |                                                       |   |   |                                               |   |   |   |
|     Canceled  |   |                                  | --     |   |                                       |   | --     |                                                       |   |   |                                               |   |   |   |
|     Forfeited |   |                                  | --     |   |                                       |   | --     |                                                       |   |   |                                               |   |   |   |
| Balance, June 30, 2010            |   |                                  | 550    |   |                                       | $      | 0.75   |                                                       |   |   | 2.0                                                |   |   | $ | 182 |   |
| Exercisable, June 30, 2010        |   |                                  | 550    |   |                                       | $      | 0.75   |                                                       |   |   | 2.0                                                |   |   | $ | 182 |   |

|  Non-vested Shares       |   | Shares (in thousands) |   |   | Weighted-average Grant Date Fair Value |   |
|-------------------------------|--------|----------------------------|--------|--------|---------------------------------------------|--------|
| Non-vested at January 1, 2010 |   |                       | 292    |   |                                        | $      | 2.03 |   |
| Granted                       |   |                       | 53     |   |                                        | $      | 0.95 |   |
| Vested                        |   |                       | (159)  |   |                                        | $      | 1.94 |   |
| Forfeited                     |   |                       | --     |   |                                        |   | -- |   |
| Non-vested at June 30, 2010   |   |                       | 186    |   |                                        | $      | 1.80 |   |

----

|   |     Level 2 – Inputs, other than the quoted prices in active markets, that are observable either directly   or indirectly; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |     Level 3 – Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own                    assumptions. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

                   

|     Fair Value Measurements Using Significant Unobservable Inputs (Level 3):                                                                                                                                                                                                                                                                                                |   |      |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|--------|
|                   Description                                             |   | (Level 3) |   |
| Liabilities:                                                                                                                                                                                                                                                                                                                                                                                    |   |      |   |
|    Balance at January 1, 2010                                                                                                                                                                                                                                                                                                                                                    |   | $         | 221    |   |
|                                                                                                                                                                                                                                                                                                                                                                                            |   |      |   |   |
|    Change in fair value included in operations                                                                                                                                                                                                                                                                                                                                   |   |      | (221)  |   |
|                                                                                                                                                                                                                                                                                                                                                                                            |   |      |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                            |   |      |   |   |
|     Balance, June 30, 2010                                                                                                                                                                                                                                                                                                                                                  |   | $         | 0      |   |

----

|                                                          |   | In thousands |       |
|---------------------------------------------------------------|--------|--------------|------------|
| Balance, January 1, 2010                                      |   | $            | 3,528      |   |
|    Dividends accrued                           |   |         | ( 42) |   |
|    Stock based compensation                    |   |         | 269        |   |
| Redemption of Series D Preferred    Stock |   |         | (100)      |   |
|    Net income                                  |   |         | 823        |   |
| Balance – June 30, 2010                                 |   | $            | 4,478      |   |

----

|                                       |   | Three Months Ended June 30, |         |   | Six Months Ended June 30, |   |
|--------------------------------------------|--------|-----------------------------|--------------|--------|---------------------------|--------|
|                                       |   | 2010                        |         |   | 2009                      |   |   | 2010 |   |   | 2009 |   |
| Weighted Average Common shares outstanding |   |                        |  11,430 |   |                      |   |  10,800 |   |   |   |  11,356 |   |   |   |  10,735 |   |
| Options to purchase common stock           |   |                        | 200          |   |                      |   | 188 |   |   |   | 232 |   |   |   | 292 |   |
| Restricted stock grants                    |   |                        | 5            |   |                      |   | 28 |   |   |   | 6 |   |   |   | 27 |   |
| Total diluted shares                       |   |                        | 11,635       |   |                      |   | 11,016 |   |   |   | 11,594 |   |   |   | 11,054 |   |

|                              |   | Three Months Ended June 30, |   |   | Six Months Ended June 30, |   |
|-----------------------------------|--------|-----------------------------|--------|--------|---------------------------|--------|
|                              |   | 2010                        |   |   | 2009                      |   |   | 2010 |   |   | 2009 |   |
| Options to purchase common stock  |   |                        | 75     |   |                      |   | 830 |   |   |   | 75 |   |   |   | 830 |   |
| Warrants to purchase common stock |   |                        | 500    |   |                      |   | 943 |   |   |   | 500 |   |   |   | 943 |   |
| Restricted stock grants           |   |                        | 131    |   |                      |   | 420 |   |   |   | 131 |   |   |   | 420 |   |
| Total potential common shares     |   |                        | 706    |   |                      |   | 2,193 |   |   |   | 706 |   |   |   | 2,193 |   |

|                                |   | Three Months Ended June 30, |   |   | Six Months Ended June 30, |   |
|-------------------------------------|--------|-----------------------------|--------|--------|---------------------------|--------|
|                                |   | 2010                        |   |   | 2009                      |   |   | 2010 |   |   |  2009 |   |
|   SaaS fees               |   | $                           | 2,204  |   |                      | $      | 2,253 |   |   | $ | 4,377 |   |   | $ | 4,485 |   |
|   Custom engineering fees |   |                        | 309    |   |                      |   | 627 |   |   |   | 517 |   |   |   | 689 |   |
|                                |   |                        |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Total Revenue                       |   | $                           | 2,513  |   |                      | $      | 2,880 |   |   | $ | 4,894 |   |   | $ | 5,174 |   |

----

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| ·   | it requires assumptions to be made that were uncertain at the time the estimate was made; and |
|--------------------|-----------------------------------------------------------------------------------------------|

| ·   | changes in the estimate, or the use of different estimating methods that could have been selected, could have a material impact on the Company's condensed consolidated results of operations or financial condition. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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